IntroductionHendry et al (2000) suggest that appraisal is an “abused” process, designed to control the activities of employees. However, past and recent researchers view performance appraisals as a strategic and integral part of an organization (Longenecker and Goff 1992; Coutts and Schneider 2004). Performance appraisal is referred to by two simple terms that provoke and propel strong responses, feelings, opinions and judgment in the organizational context of the formal appraisal procedure when used together (Pettijohn L. et al 2001 and Kumar 2005). Most organizations in the world, regardless of their size, type and product distinction, use performance appraisal; but with different levels of achievement as an instrument used to drive a mix of human resource management objectives (Pettijohn L. et al 2001). Previous publications suggested that performance appraisal existed based on several rationales, including consideration of selection decisions, a criterion for salary increases, a means of providing feedback between managers and employees, and the facilitation of employee development (Mount 1984). Research has focused on establishing systems to improve the psychometric properties of performance evaluations (Mount 1984, Fombrun and Laud 1983). However, subsequent research has attributed recent changes in the performance appraisal system to large-scale organizations rather than theoretical advances (Redman and Wilkinson 2006). Many definitions have been given to performance appraisal by many academics, researchers and practitioners. According to Flippo (1984), “Performance appraisal is the systematic, periodic, and unbiased evaluation of an employee's excellence in areas relating to the top... participants. This will lead to increased employee and employer satisfaction (Crook and Crossman 2004 and Hunt N. 2007). Conclusion Implementing a regular and systematic performance appraisal system within an organization has enormous benefits, some of which are increased employee contribution, knowledge and productivity. however, it is performance consultation, professional training, performance improvement and adequate feedback system which in turn increases employee contribution and ensures smooth productivity organizations. In order to get the most benefit and acceptability from performance reviews, it is recommended to have a system in place. developed in consultation with workers and managers, and clear links are established between assessments and rewards and valued outcomes (Duraisingham V. and Skinner N.. 2005).